Investments that offer 10% or more in South Africa

Investments are always done with the hope that you get the best returns. But it is important to understand that the investment landscape is littered with corpses of seemingly legitimate high yield investment schemes. Caution must therefore be applied before you transfer your cash to something more lucrative. Below are some investment options that offer you 10% or more.

Finbond Mutual Bank – Finbond Mutual Bank is South Africa’s newest bank and this institution offers generous interest rates to attract deposits. A R66 month fixed deposit offers 10% a year.The minimum deposit accepted is R100,000.Unlike others, Finbonds offering has a banking licence,something that the South African Reserve Bank does not hand out to just anyone. Finbonds banking licence should certainly provide comfort to investors.

Escalator Capital – Escalator Capital is a public company that offers preference shares with a 10% a year dividend.The preference shares have a lifespan of five years and dividends are paid monthly, which makes them attractive to pensioners who need a regular income to meet day to day expenses.

Bridge – In 2013 Bridge began a process in which investors would convert their businesses into shares and/or debentures issued by a single company. Two types of debentures were offered: one that pays 19% a year but is not convertible into shares, and a convertible debenture that pays 12%. Bridge is not currently selling debentures but it is possible to buy them in the second-hand market.The Bidge website reveals that the company is close to launching a retail note programme to fund its business. Unlike other retail note programmes, this one is aimed at retail investors.The product called a Bridge Savings bond, will pay 12% a year and will be secured by assets.

Cambist – Cambist is a platform that allows investors to buy debt contracts secured by garnishee orders. Initially,contracts offered a return of 24% but this was later reduced to 19.5%.As with the initial Bridge opportunity, non-performing contacts are bought by an entity called the River Bush Property Trust.

A safe alternative – If you are looking to earn more than the average savings account but the options above sound too risky,rather consider a retail savings bond.The National Treasury offers retail investors the chance to buy government bonds.These bonds are considered to be extremely safe and returns are guaranteed by the South African Government. A five year retail bond offers a fixed return of 7.5% a year. Bonds can be purchased at any Post Office or Pick n Pay store countrywide.